Consultants Forum Advertise
Subscribe
Close

  • Free for qualified executives and consultants to industry

  • Receive quarterly issues of Area Development Magazine and special market report and directory issues

Subscribe Now
Renew

Area Development - Site Selection, Facility Planning and Workforce Development

LioChem e-Materials Establishes Simpson County, Kentucky, Manufacturing Plant

01/27/2023
LioChem e-Materials, a subsidiary of Toyo Ink SC Holdings Co. Ltd, will establish a new facility in Simpson County, Kentucky. The $104.4 million project is expected to create 141 jobs.

Located at 310 Ronnie Clark Drive in Franklin the operation will produce and distribute a liquid dispersion of carbon nanotubes that contributes to the production of more durable, high-capacity and higher-output EV batteries. The product will help to improve the performance of lithium-ion batteries that are primarily used in EVs.

“Since 2021, the Toyo Ink Group has been supplying battery materials created at our manufacturing facility, LioChem, in the state of Georgia,” said Hideki Okaichi, executive operating officer of Toyo Ink. “North American demand for this essential material continues to grow rapidly. To meet projected future demand, we decided to establish LioChem e-Materials as our second battery material production based in the United States. This new site is expected to further bolster our regional and global supply chain.”

To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) on Thursday preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $4 million in tax incentives based on the company’s investment of $104.4 million and annual targets of: creation and maintenance of 141 Kentucky-resident, full-time jobs across 10 years, and paying an average hourly wage of $29 including benefits across those jobs.

Additionally, KEDFA approved LioChem for up to $200,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.

By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.

"Kentucky has made incredible strides developing our electric vehicle industry during the past few years,” noted Governor Andy Beshear. “We are committed to making Kentucky an attractive location for companies making EVs, batteries and the supply chain around this fast-growing sector. I want to thank the leaders at LioChem for believing in Kentucky and our incredible workforce. I look forward to watching the company’s success and its contribution to making Kentucky a national leader in EVs.”

In addition, LioChem can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.

“LioChem marks the 12th international company to locate in Franklin,” added Gary Broady, chairman of the Franklin-Simpson Industrial Authority Board. “This company will be a welcomed addition to our Henderson Industrial Park. They are providing great job opportunities for our community.”

LioChem is a leading manufacturer of quality printing inks, coatings and plastic colorants. Founded in 1988 as part of the worldwide Toyo Ink Group, the company merged dispersion technology systems from Japan with innovative manufacturing facilities in the U.S. to become a recognized industry leader.

Share

Exclusive Research